(Harvest) Still, EM valuations are attractive in the aggregate. Even after this year’s gains, the MSCI EM Index trades at a 25% discount to the MSCI World Index of global developed stocks. What’s more, the return of EM equities this year has been driven largely by fundamentals. Against a backdrop of solid global trade growth, EM earnings estimates have been revised upward throughout the year. And since only a 10th of EM equity returns to date have been generated by an expansion of earnings multiples, we think there’s room for further gains.
Emerging Markets: Three Places to Look Next
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